Interim Order Follows Dispute Over Letters of Credit Deposit by FHT Mega Express
The Federal Capital Territory (FCT) High Court in Abuja has directed the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to freeze N7.15 billion connected to Parallex Bank Limited.
The order, issued by Justice Hauwa Gummi at the Asokoro High Court, stems from an ex parte application filed by FHT Mega Express Limited, which alleged mishandling of funds deposited for a letters of credit (LC) transaction.
In the case filed as CV/4737/2025, FHT Mega Express named Parallex Bank as the first respondent, with the CBN and NDIC as second and third respondents. The court instructed the financial institutions to transfer the funds into an interest-yielding account under their custody while the matter is being litigated. The hearing for the substantive motion has been scheduled for January 15, 2026.
The application was moved by Tolu Babalaye, counsel to FHT Mega Express, and supported by a 49-paragraph affidavit deposed by O. Yomi Sholoye. Court notices have since been issued to all respondents.
Background of the Dispute
FHT Mega Express said the dispute arose from a banking relationship with Parallex Bank in 2023, when it deposited N7.15 billion as cash collateral for a $7.31 million LC intended to facilitate international trade. The company claimed the bank initially promised to issue the LC promptly once the funds were provided and to source foreign exchange immediately.
However, FHT Mega Express alleged that Parallex Bank failed to issue the LC, delayed foreign exchange purchases during market volatility, and later demanded additional payments citing exchange rate differentials. According to the applicant, the bank also refused to release the bill of lading for imported goods, leading to the abandonment and subsequent auctioning of containers by the Nigeria Customs Service (NCS).
FHT Mega Express argued that it had fulfilled all obligations and expressed concern that Parallex Bank might not refund the funds if the court eventually ruled in its favor, prompting the request for an interim preservatory order to protect the deposited funds.
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